Why Is Independent Bank Group Stock Surging Today?

Independent Bank Group, Inc. IBTX shares are trading higher after the company inked a deal to be acquired by SouthState Corporation SSB in an all-stock transaction valued at around $2 billion.

As per the terms, Independent Bank shareholders will receive 0.60 shares of SouthState stock for each share they hold. This equates to $48.51 based on SouthState’s closing stock price of $80.85 as of May 17, representing a premium of over 10% to IBTX’s last closing price of $43.94.

David R. Brooks, Chairman and CEO of Independent Bank Group, said, “The combination of these two companies operating in growing markets provides a great opportunity for our Independent Bank Group teammates, clients and communities to flourish.”

The transaction, which is expected to close by the end of the first quarter of 2025, was approved by the boards of directors of both banks by the unanimous vote of directors present at their respective meetings.

Post deal closure, the combined company will have pro forma total assets of $65 billion, deposits of $55 billion, gross loans of $48 billion, and a market capitalization of approximately $8.2 billion, based on the closing stock price of SouthState as of May 17.

John C. Corbett, Chief Executive Officer of SouthState, said, “With a local, geographic management model, an industry-leading track record on credit and a presence in some of the best markets in the country, Independent Bank Group is a great fit with SouthState.”

As of March 31, 2024, SouthState’s cash and cash equivalents stood at $1.21 billion.

Price Action: IBTX shares are up 8.90% at $47.85 premarket at the last check Monday.

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